Latest on Dutch grid energy storage policy

Is battery energy storage a new industry in the Netherlands?

While battery energy storage system projects (BESS) in the Netherlands is still a relatively new and small industry, it becomes increasingly necessary. Growth in battery capacity began in 2021 when the total installed capacity rose by 65% compared to the previous year. This number doubled in 2022 and then tripled in 2023, reaching 621 MWh.

How much does the Dutch government pay for battery storage?

The Dutch government has earmarked €100 million ($106.7 million) of subsidies for the deployment of battery storage alongside PV projects. The funds are part of a €416 million subsidy program announced last year to alleviate grid congestion.

Are tdtrs a good idea for battery storage in the Netherlands?

Battery storage projects in the Netherlands currently bear what is likely the highest grid fee burden in any European power market—a cost that has surged in recent years due to growing grid congestion. The introduction of TDTRs offers some relief, providing a 100% reduction in the fixed component of grid fees.

What are the challenges facing the Dutch grid during peak hours?

These measures are intended to motivate large-scale users to moderate or halt the utilisation of the grid during peak hours, although the effects may not be that impactful. Battery storage and hydrogen electrolysis facilities impose further challenges on the Dutch grid.

Will a new energy storage system reduce grid fees?

Hettema said Aurora estimates the two changes combined could reduce grid fees by two-thirds, and with grid fees equal to as much as 60% of revenues for storage, that would be a substantial improvement to the business case. Of course that 15% of the time reduces energy storage operators’ flexibility to monetise their asset.

Will a 'no charge' system reduce grid fees?

Users are notified at least 24 hours in advance what the ‘no charge’ period of the day will be. Hettema said Aurora estimates the two changes combined could reduce grid fees by two-thirds, and with grid fees equal to as much as 60% of revenues for storage, that would be a substantial improvement to the business case.